26 CFR 48.4071-1 - Imposition and rates of tax.

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§ 48.4071-1 Imposition and rates of tax.
(a) Imposition of tax—
(1) Imposition of tax before January 1, 1984. Section 4071 imposes a tax at the rates set forth in paragraph (b)(1) of this section on tires made wholly or in part of rubber, inner tubes (for tires) made wholly or in part of rubber and tread rubber which are sold by the manufacturer thereof before January 1, 1984.
(2) Imposition of tax after December 31, 1983. Section 4071 imposes a tax at the rates set forth in paragraph (b)(2) of this section on tires of the type used on highway vehicles and made wholly or in part of rubber which are sold by the manufacturer thereof after December 31, 1983.
(3) Definitions. For definitions of the terms “tires,” “inner tubes,” “tread rubber,” “rubber” and “manufacturer,” see § 48.4072-1 of the regulations.
(b) Rates and computation of tax—
(1) Rates of tax before January 1, 1984—
(i) Tires:
(A) Of the type used on highway vehicles:
(1) For the period July 1, 1965 to December 31, 1980, inclusive—10 cents per pound.
(2) For the period January 1, 1981 to December 31, 1983, inclusive—9.75 cents per pound.
(B) Of the type used on other than highway vehicles:
(1) For the period July 1, 1965, to December 31, 1980, inclusive—5 cents per pound.
(2) For the period January 1, 1981 to December 31, 1983, inclusive—4.875 cents per pound.
(C) Laminated tires for the period July 1, 1965 to December 31, 1983, inclusive—1 cent per pound.
(ii) Inner tubes:
For the period July 1, 1965 to December 31, 1983, inclusive—10 cents per pound.
(iii) Tread Rubber:
For the period July 1, 1965 to December 31, 1983, inclusive—5 cents per pound.
(2) Rates of tax on or after January 1, 1984. Tires of the type used on highway vehicles:
(i) Tires weighing not more than 40 pounds—0 cents.
(ii) Tires weighing more than 40 pounds but not more than 70 pounds—15 cents for each pound in excess of 40 pounds.
(iii) Tires weighing more than 70 pounds but not more than 90 pounds—$4.50 plus 30 cents for each pound in excess of 70 pounds.
(iv) Tires weighing more than 90 pounds—$10.50 plus 50 cents for each pound in excess of 90 pounds.
(3) Computation of tax. The tax on tires, inner tubes, and tread rubber is computed by applying to the total weight (including a fractional part of a pound) of the article the rate in effect at the time the article is sold. See § 48.4071-2, relating to determination of weight.
(c) Liability for tax. The tax imposed by section 4071 is payable by the manufacturer when the manufacturer makes a sale of a taxable article, or as provided in section 4071 (b) and § 48.4071-3 for a manufacturer who sells at retail, when the manufacturer delivers a taxable article to a retail store, or to a retail outlet, of the manufacturer.
(d) Recapped or retreaded tires. The recapping or retreading of a tire, whether from shoulder-to-shoulder or bead-to-bead, does not constitute manufacture of a taxable tire. The tax on tires imposed by section 4071 does not apply to the sale of a recapped or retreaded tire, except that a used tire or carcass not previously sold in the United States that is recapped or retreaded from shoulder-to-shoulder or bead-to-bead in a foreign country and imported into the United States is subject to the tax imposed by section 4071 when such tire is sold or used by the importer. This paragraph (d) is effective for recapped and retreaded tires sold on or after January 1, 1984.
(Secs. 4071(b), 4071(c), 4073(c), and 7805, Internal Revenue Code of 1954. (80 Stat. 331, 26 U.S.C. 4071(b); 68A Stat. 482, 26 U.S.C. 4071(c); 70 Stat. 389, 26 U.S.C. 4073(c); 68A Stat. 917, 26 U.S.C. 7805))
[T.D. 7809, 47 FR 6005, Feb. 10, 1982, as amended by T.D. 8057, 50 FR 41491, Oct. 11, 1985; T.D. 8152, 52 FR 31618, Aug. 21, 1987]

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